Flashcards in Mass and Niche Markets Deck (9)
What is the difference between mass markets and niche markets?
-In a mass market, customers' needs are less "specific" and more "general"
-A niche market is when a business sells a product to a small customer group, in a market which has often been untouched by larger businesses.
Give an example of a mass and a niche market
-Mass market - LuLu, Carrefour
- Niche market - Louis Vuitton, Gucci
Give two positives of mass and niche markets
-Mass Markets: - Lower risk since resources are focused on one large market.
-It is associated with higher production output and capacity + potential for economies of scale
-Niche Market: Gives you a clear focus since you are targeting a particular group of customers.
-Profit margins are often higher.
Give two negatives of mass and niche markets
-Niche Markets-Vulnerable to market changes
-Likely to attract competition if successful
-Mass Markets-Fixed Costs
Which two ways can market size be measured?
What is market share and how is this calculated?
-This is the proportion of a market that is held by a business.
-It is calculated like this: (Sales of a business / total sales in the market) x 100
What is a ‘market leader’?
The business who has the most market share in the market.
What is meant by a ‘market’?
A market is the place where buyers and sellers meet. Businesses can be categorized depending on which market they operate in.